Ethereum Price Drops Below Critical Support in 2025
Ethereum (ETH) has officially turned negative for 2025, experiencing its most significant daily loss in months. This sharp dip comes as crypto market liquidations exceed a staggering $1.1 billion within 24 hours, marking a pivotal moment for traders and investors.
Over 303,000 traders were liquidated, with $287 million in long positions erased within a single hour. Ethereum broke below the crucial $3,400 mark, recording a 7% daily drop, effectively wiping out all its year-to-date (YTD) gains. This signals a dramatic shift in market sentiment after prolonged stability in the altcoin sector.
Bitcoin Also Under Pressure as Whales Sell Off
Bitcoin (BTC), the market’s leading cryptocurrency, followed a similar downward trend, slipping to an intraday low of $100,721. This leaves the digital asset dangerously close to the psychological $100,000 threshold — a support level that hasn’t been breached since mid-2023.
Market data from Coinglass revealed that Bitcoin and Ethereum accounted for the majority of liquidations. However, other altcoins like Solana (SOL), Binance Coin (BNB), and Ripple (XRP) faced steep sell-offs. Heavy selling pressure from large investors, or whales, played a significant role, with over 38,000 BTC offloaded since mid-October, as reported by analytics firm Santiment.
Retail Traders Accumulate as Market Stress Grows
Interestingly, while whales reduced their holdings, retail investors continued to accumulate small amounts of Bitcoin, adding optimism for a potential turnaround. Wallets holding less than 0.01 BTC increased their holdings by 415 BTC (+0.85%) during the same period. Historically, such buying patterns by smaller investors occur during market downturns but may not signal an immediate recovery.
Santiment analysts caution that a broader market recovery depends on whales transitioning from selling to accumulating assets. Until then, the market could remain under pressure, with Bitcoin and Ethereum flirting with further breakdowns. If Bitcoin fails to hold above $100,000, it could exacerbate outflows and drive intensified negative sentiment across the crypto ecosystem.
Prepare for Market Volatility: Insights and Tools
In unpredictable markets, it’s crucial to have the right tools for your investment strategy. To better prepare for crypto fluctuations, products like the Ledger Nano X hardware wallet provide secure storage for your assets, keeping them protected from market risks and cyber threats.
While current market conditions reflect uncertainty, they also present opportunities for traders who can navigate volatility with informed decisions.
Stay updated with daily insights and be ready to adjust your strategies as the crypto market continues to evolve.
